Semi-detached house (130 sqm) in South Bavaria financing

Wow, that's terrible. I wouldn't do that, never. Do you want to get into such heavy debt?? We have the same [HEK] but only 1/3 of the financing and already think that's the height of feeling.

You don't suspect anything bad, and then this comes:

1,260,000 euros need to be financed

... no words. Actually, I wanted to write after these first two lines

Since our eldest daughter is to start school next year in the desired location, we are under some time pressure.

that it shouldn't be a problem for a child to change schools and make friends even after the first school year, so one shouldn't jump to hasty conclusions, but your wife should probably know that herself. And yes: I also think it's too much. As a rule of thumb, one says 1/3 of the salary as repayment... I find your fear justified. What would plan B look like?

What about expected inheritances? I know some people who finance such amounts in Munich but only because six-figure sums are expected at some point.

How would plan B look like?

Thank you very much for your assessment!

Plan B would be to hope to win the bid for one of the few rental houses/garden apartments or to hope that something cheaper comes up for sale (unlikely). I have a few contacts on site, but nothing has come of it so far.

How about expected inheritances?

Yes, something will (hopefully only in many years) come, roughly estimated at about 400,000 euros for both of us together.

I see 800,000€ in loans as the highest you can manage. How about considering a change of residence? Munich has become an unaffordable place. Just looking at the price of land alone makes me feel sick. We have just bought a house in Schleswig Holstein between the seas with a 1170 sqm plot for under 500,000€. Built in 2012. You don't even get a towel-sized plot for that price with you.